JSW Steel: SC to hear BPSL case review petition in open court; stock up 2% ahead of hearing
The Supreme Court, in a closed-chamber review hearing held on Tuesday, allowed JSW Steel's review petition against its May 2 verdict — which had annulled the company's ₹ 19,350 crore acquisition of BPSL and directed the liquidation of the company — to be heard in open court.
The development provides a crucial legal opportunity for JSW Steel to retain control of BPSL, which it acquired in March 2021 through the corporate insolvency resolution process.
The court's decision also comes as a relief to lenders, including State Bank of India and Punjab National Bank, who had filed separate review petitions supporting JSW Steel's position. The May ruling had directed the banks to return ₹ 19,350 crore paid by JSW Steel, thereby jeopardizing nearly ₹ 34,000 crore in total banking sector exposure.
Both JSW Steel and the lenders have argued that liquidation would be detrimental to BPSL, which has remained a profitable and operationally viable entity under the approved resolution plan. The apex court had earlier granted interim relief on May 26, directing a status quo on liquidation to allow time for the review petition to be filed.
The May verdict had found that the acquisition violated provisions of the Insolvency and Bankruptcy Code (IBC), particularly with respect to adherence to mandated timelines.
BPSL was among the Reserve Bank of India's original list of 12 large defaulters identified in 2017 for resolution under the IBC. At the time, the company owed more than ₹ 47,000 crore to its lenders.
JSW Steel share price has risen 2% in one month and 9% in the past six months. On a year-to-date (YTD) basis, JSW Steel shares have rallied 15%, while it has gained 65% in the past three years. The stock has delivered multibagger returns of 385% in five years.
At 10:15 AM, JSW Steel share price was trading 0.40% higher at ₹ 1,039.00 apiece on the BSE.
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